Orbitz Can Continue to Sell American Airlines Tickets, Appeals Court Rules
American Airlines must continue to supply flight and fare information to Orbitz Worldwide Inc. (OWW), the second biggest U.S. online travel agency, an appellate court has ruled.
The decision, handed down yesterday by a Chicago-based panel of the state’s intermediate-level court of appeal, upholds a Chicago judge’s June 1 order compelling AMR Corp. (AMR)’s American to reinstate Orbitz.com’s ability to issue tickets for its flights.
“Customers searching for travel packages want to book the flights they find,” the unanimous three judge panel wrote. “When American frustrates that purpose by not allowing the customers to use Orbitz to book its flights, customers will likely look to other online agencies.”
Orbitz allows consumers to view airline flight schedules and fares and purchase tickets online through its website. When negotiations on a new contract between the two companies failed, American said it would terminate its contract with Orbitz on Dec. 1.
Orbitz filed suit on Nov. 5, and asked for a restraining order. American had stopped displaying and selling tickets through Orbitz on Dec. 21 after defeating Travelport Ltd.’s initial bid for an order blocking that action. Travelport owns 55 percent of Chicago-based Orbitz.
Favorable Ruling
After Cook County Circuit Court Judge Martin Agran issued that ruling, he was transferred, Travelport moved for reconsideration and won a favorable ruling from successor Judge Lee Preston.
“The ruling further supports one of Travelport’s damages claims against AA, given AA’s improper termination of Orbitz’ ticketing authority,” Travelport said today in a press statement.
“We are disappointed by the Illinois court decision and are evaluating our options,” said Ryan Mikolasik, a spokesman representing American, a unit of Fort Worth, Texas-based AMR.
“In the meantime, the injunction issued against American terminated by its own terms on Sept. 1,” Mikolasik said. “We have a new interim agreement with Travelport that provides for our continued participation in Orbitz, and we do not expect that to change in the near term.”
Using Content
Eric Bock, chief legal officer for Atlanta-based Travelport said in the statement that the company was “pleased with the appellate court’s recognition” of its contractual rights.
“Those rights are critical to protecting our agencies’ ability to have and fully use AA’s content,” Bock said.
The appellate case is Travelport LP v. American Airlines Inc., 2011 IL App (1st) 111761, at the Illinois Appellate Court, First District (Chicago). The lower court case is Travelport v. American Airlines, 10CH48028, Circuit Court of Cook County, Chancery Division (Chicago).
To contact the reporters on this story: Andrew Harris in Chicago at aharris16@bloomberg.net; Mary Schlangenstein in Dallas at maryc.s@bloomberg.net.
To contact the editors responsible for this story: Michael Hytha at mhytha@bloomberg.net; Ed Dufner at edufner@bloomberg.net.
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